Aussies keep property for more than decade
Nearly one-in-two Australian investors intend to hold on to their property for more than a decade, according to Mortgage Choice.
The firm’s annual investor survey revealed 45.6 per cent of Australian investors intended to keep their property for 10 years or longer.
Mortgage Choice chief executive, John Flavell, said investing in property meant investors should be prepared to wait a long time before they witnessed significant amounts of growth in the value of their investment.
“In fact, most of the time when it comes to property investment, the longer you hold onto the dwelling, the more money you stand to make,” he said.
“There are lots of costs involved in buying and selling a property, such as stamp duty, agent fees, and pest and building inspections, and you are likely to reduce the impact of these costs on your hip pocket with time.”
CoreLogic’s ‘Pain & Gain’ report found that in the March 2017 quarter, houses that resold at a profit had usually been owned for 9.1 years, while apartments that were resold at a profit had been held for 7.6 years.
“On the other hand, houses that resold for a loss had typically been owned for 6.3 years, while apartments that resold for a loss had typically been owned for 6.9 years,” Flavell said, adding that each city and region would differ.
Investors looking to invest in property should do so with a 10-year outlook and seek areas that would be poised for growth. New infrastructure projects were a good indicator of areas that would see a rise in demand for housing, Flavell said.
AUTHOR
Malavika Santhebennur
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